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Market profile methodology

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Market profile methodology

  1. 1. Market profile methodology<br />
  2. 2. MP Objectives<br />Market profile: the specific purpose of the course is to build the capacity of trainees to prepare:<br />Custom-designed short reports, produced in a few days, on target markets to respond to the requests of client companies;<br />In-depth market briefs for a larger audience to address general inquiries and provide useful background for interested exporters; <br />Participants will be able to draft reports to illustrate the feasibility of penetrating a targeted market and be able to present results of a market profile to a business oriented audience. <br />
  3. 3. What is a Market Profile? <br />Product focused: <br /><ul><li>dealing with a single product or a narrowly defined group of products</li></ul>Limited Geographically: <br /><ul><li>dealing with one market or markets that share similar features</li></ul>Concise: <br /><ul><li>a description of the main market and marketing characteristics</li></ul>Practical: <br /><ul><li>containing information necessary to help exporters with marketing decisions and actions</li></li></ul><li>Who builds and uses Market Profiles?<br />Trade Promotion Organizations (TPOs)<br />Sector trade organisations<br />Associations of small and medium enterprises(SMEs)<br />Foreign trade services: forwarding agents, carriers, insurance agents, bankers, etc;<br />Enterprises<br />
  4. 4. Identifying (and describing) a product<br />A sample of questions:<br />“What is the main application and function of the product?”<br />“What factors (tangible and augmented) constitute the product?”<br />“How flexible are these factors? Can they be altered to fit a market?”<br />"Can the product fit in a certain lifestyle? Differences by market?”<br />“How could the product be adapted/standardised to differentiate it to competition?”<br />
  5. 5. Define your product<br />Critical to be as specific as possible when defining the product range that will be covered in the profile.<br />
  6. 6. Product description <br />Level of detail is important. <br />The more focused, the more useful it is for your clients, but the less flexible it is for you<br />Seafood vs. shrimp vs. frozen shrimp vs. prepared foods containing shrimp<br />In the description: what the product is used for?<br />it might change the market entirely<br />Cashew can be a nut (kernel), a fruit (cashew apple), can produce industrial lubricant<br />Industrial vs. Household uses for glass<br />
  7. 7. Features of our product?<br />Warranty<br />Additional<br />Services<br />Shipping<br />and<br />Handling<br />Efficiency<br />Versatility<br />BASIC<br />PRODUCT<br />Packaging<br />Quality<br />Post-sale<br />service<br />Brand<br />Name<br />Style<br />“Ethical<br />Consumption”<br />TANGIBLE<br />PRODUCT<br />AUGMENTED<br />PRODUCT<br />
  8. 8. Features of a product<br />The base product – the core<br />most elementary and generic definition of the content and use of the product<br />a shirt : a piece of clothing to cover the upper-body and protect against the elements<br />chocolate: the cocoa butter mixed with a few basic ingredients<br />The tangible factors – the physical features<br />physical attributes that the consumer can see, touch, want and need: design, form, style, brand name, versatility, efficiency<br />a shirt: a choice of colours, style, quality of the stitching, brand descriptors, versatility (easy-ironing, formal/informal), etc.<br />Chocolate: choice and content of ingredients, shapes and sizes, wrapping, etc.<br />
  9. 9. Features of a product<br />The Augmented characteristics – the "ethereal" features<br />Certification/quality control (in foreign markets)<br />a guarantee can help a new company to reassure local consumers about quality<br />Characteristic of the production process that carry special value:<br />Organic ingredients, environment-friendly, child labour-free, etc.<br />Transport and insurance <br />services such as transport, customs clearance, insurance,... <br />can be supported by the purchaser, by the exporter or be divided between these two parties<br />Packaging<br />Maintenance/guarantee<br />
  10. 10. An example of product description…<br />The cashew, Anacardium occidentale L., belongs to Anacardiacea or cashew family. Other important plants of this family are the mango (Mangifera indica) and the pistachio nut (Pistacia vera).<br />The cashew tree is versatile. The cashew tree produces fruit and a by-product: the nutshell oil. The fruit consists of two parts: a pear-shaped stalk called the cashew “apple” and a greyish brown kidney-shaped nut (HS 08.01.31), which is attached to the lower end of the apple and contains a slightly curved white kernel (HS 08.01.32), wrapped in a thin brown skin or testa. The nutshell, which is smooth and oily, contains a toxic, resinous material from which is obtained the cashew nut shell liquid (CNSL).<br />The apples go rotten within 24 hours of harvesting unless refrigerated while the nuts may be kept for about a year provided they are properly dried immediately after harvesting (maximum moisture 9%) to prevent mould and properly stored. Usually the nuts are sun dried and constantly turned over for several days until the kernels rattle in the shell……..<br />Source: ITC Market Profile on Cashew Nuts<br />
  11. 11. Identifying a target market<br />A sample of questions:<br />What is the consumption and production of this product around the world?<br />What are the fastest growing markets for my product?<br />Which countries are supplying those markets?<br />What is the position of our producers in those markets?<br />What are the access conditions for those markets?<br />. . . Where should I focus further research?<br />
  12. 12. Identifying routes to a market<br />A sample of questions:<br />How is this product distributed in the target markets?<br />What are the options for promoting this product?<br />What trade fairs should I attend? Who else has been attending?<br />What buyers should I focus on?<br /> . . . How can I make a sale?<br />
  13. 13. Provides exporting enterprises with a concise overview of conditions for market entry and trends in a given import market<br />Organizes the information about the product and market in a user-friendly and comprehensive framework <br />A Market Profile provides an understanding on where the opportunities lie and how to access these opportunities<br />When in doubt… remember the purpose<br />
  14. 14. Model layout of a MP <br />